President Adjusts Import Rules for Semiconductors to Protect U.S. Security
Published Date: 1/20/2026
Presidential Document
Summary
The U.S. government is stepping up to protect national security by adjusting how semiconductors, their manufacturing gear, and related products are imported. Because we rely too much on foreign sources for these crucial chips and tools, new rules will help boost domestic production and keep our economy and defense strong. These changes start soon and could affect companies importing these products, with potential impacts on costs and supply chains.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 2 costs, 1 mixed.
25% Tariff on Certain Imported Chips
The proclamation imposes a 25 percent ad valorem duty on imports of the Covered Products beginning for goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. Eastern Standard Time on January 15, 2026. This 25% duty is in addition to any other applicable duties, fees, exactions, and charges, unless otherwise provided.
Broader Tariffs and Tariff-Offset Incentives
The proclamation directs negotiations and contemplates that, after negotiations or if they fail, the United States may impose broader, significant tariffs on semiconductors and related products, and it contemplates a tariff-offset program to give preferential tariff treatment to companies investing in U.S. semiconductor production and parts of the U.S. supply chain.
Exemptions for Data Centers, R&D, Startups
The 25% duty does not apply to imports of the Covered Products when the imports are for use in United States data centers; for repairs or replacements performed in the United States; for research and development in the United States; for startups in the United States; for non-data center consumer applications in the United States; for non-data center civil industrial applications in the United States; for use in United States public sector applications; or for other uses the Secretary determines strengthen the U.S. technology supply chain.
No Drawback; Foreign-Trade Zone Entry Duty Rule
The proclamation states that no drawback shall be available with respect to the duties it imposes. Any Covered Product (except those eligible for admission as 'domestic status' per 19 CFR 146.43) admitted into a United States foreign trade zone on or after the effective date must be admitted as 'privileged foreign status' and will be subject on entry for consumption to applicable ad valorem rates of duty.
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